Italy's antitrust authority AGCM has given the green light for the buyout of Italian Beni Stabili by French Fonciere des Regions. Fonciere des Regions signed an agreement with Beni Stabili's chairman Leonardo Del Vecchio in February to take over about 35% of Italy's second-largest real-estate company. The French company said it will launch a mandatory exchange offer for all of Beni Stabili's shares, subject to shareholders' approval, on 1 May 2007.
Italy's antitrust authority AGCM has given the green light for the buyout of Italian Beni Stabili by French Fonciere des Regions. Fonciere des Regions signed an agreement with Beni Stabili's chairman Leonardo Del Vecchio in February to take over about 35% of Italy's second-largest real-estate company. The French company said it will launch a mandatory exchange offer for all of Beni Stabili's shares, subject to shareholders' approval, on 1 May 2007.
Fonciere des Regions, chaired by Christophe Kullmann, is planning to retain a 51% stake in Beni Stabili when the Italian company is converted into a SIIQ, the Italian equivalent of a real estate investment trust (REITs), 'in order to benefit from the new tax regulation and the new opportunities expected to arise from the introduction of the tax-efficient vehicle '.
FDR's strategy in relation to Beni Stabili is conditional on the final text of the SIIQ legislation that is to be published by the end of April. FDR said that, although it is planning to transform Beni Stabili into a SIIQ, 'there is no obligation to convert Beni Stabili by the end of the year'. The process is likely to take longer if it is considered that the company is not ready or Italy's new REIT legislation contains any surprises.